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Business Plan
“Organization of Sapphire manufacturing”
Date of publication – autumn 2013. Review date – autumn 2014
Start-up stage
Company named “Pure” will be arranged for this specific business project
Contact details: mob. +37491019660
o E-mail: [email protected]
It is proposed to grow sapphire crystals and to cut plates from them for wide range of possible
usage. Boules will be made weighing 32kg, 65kg and 82 kg, cores sapphire and sapphire plates.
Manufacturing focus will depend on the market conjuncture.
Main global players in this field are STC corporation (Korea), production of 1,37mln mm of
sapphire, followed by Rubicon Technology (USA) and “Monocrystal” (RF) with 1 mln. mm
production each. Then there are Harbin Aurora Optoelectronics Technology (China, about
500.000 mm), USI Optronics (Taiwan, 400,000-500,000 mm), TeraXtal Technology (Taiwan,
200,000 mm). Cited from DIGITIMES Research
Managing staff:
General Director – Edward Tumanyan +37491019660
Science Director – Armen Nazaryan- +37493950600
Chief Specialist – Ashot Arakelyan
See detailed information in Appendix 3
The overall cost of the project amounts to 44mln. C.U. for 5 years. Necessary investments about 20
mln. C.U. depending on global market pricing. Investments will be returned in the beginning of
5-6 years.
Profits of the company generated in the initial stage will be poured to pay the investments with
interests and then on the expansion and development of the manufacturing.
TABLE OF CONTENT
Introduction
1. Resume
2. Economic review
3. About the Company
3.1. Company structure
3.2. Goals and objectives
3.3. Main directions of the enterprise
3.4. Responsibilities
3.5.Human resources development and training
4. Production
4.1. Introduction
4.2. Product description and prime cost
4.2.1. Prime cost calculations
4.3. Potential consumers
4.4. Description and characteristics of the possible production at the end of the year five.
5. Technological-manufacturing process and manufacturing utilities
5.1. Manufacturing plan
5.2. Description of the required equipment
5.3. Technological-manufacturing process scheme
5.4. The source material for sapphire crystal growth
5.5. Potential production capacity and the calculation of the required equipment
5.6. Personnel
6. Marketing Plan
6.1. Industry and competitor evaluation
6.2. Growth perspectives of sapphire crystal manufacturing
6.3. Market entry plan
6.4. SWOT analysis
6.5. Advertising plan
6.6. Advertising
6.7. Branding
7. Sales
7.1. Forecasted production volume
7.2. Pricing for similar products in international markets
7.3. Pricing policy of the Company
7.4. Product sales
8. Company development plans
9. Financial plan
10. Investment plan and profit
11. Competitive advantages and conclusions
Appendixes
Appendix 1: Risk estimations
Appendix 2: Patents and Licenses of specialists, Intellectual property
Appendix 3: Resumes of administrative management
Introduction.
The idea of using a sapphire, for practical purposes and, accordingly, growing sapphire mono-
crystals in artificial environment, has appealed to humanity long time ago. To embody the idea in
practice was possible only at the beginning of the 21st century. Today, the scope of the sapphire
usage is quite extensive. With its unique combination of characteristics (high stability - next to
diamond, strength, melting point, chemical and radiation resistance, and optical clarity) sapphire
is highly demanded in almost all fields of science and technology. This is the basis of future
electronics, manufacturing of lenses, ophthalmic scalpels, windows of spacecraft, rockets,
aircrafts, as well as LEDs and many other modern devices. Artificial sapphires in their
characteristics are almost as good as natural. This business plan is intended for five years.
1. Resume.
Development of a unique scientific-experimental platform and crystal manufacturing has
launched its rapid developed in the former Soviet Union in the years 60-80 of the last century.
Under the general guidance of the Institute of Science Crystallography of the USSR centers were
formed in Ukraine, Armenia, as well as in the RSFSR, particularly in Stavropol. The main impetus
at that time was the need for the development of materials for lasers and devices for electronic
equipment.
So , a powerful infrastructure based on "Laser equipment" NGO of the Institute for Physical Research of
Armenian SSR , several departments of the State University and the Polytechnic Institute , the exact
technical stones plant in Nor Hachn, Arzni "Sapphire", Vanadzor chemical plant, several enterprises of the
Ministry of electronics, radio and electro-technical industries. Growth apparatus was built, variety of
crystals including sapphires were grown from melts and solutions. By the level of production and the
consumption of crystals, Armenia was among the first three republics together with Russian Federation
and Ukraine. With the collapse of the Soviet Union almost all the practice was stopped. But the school
remained. And this was one of the leading schools in the world, and sapphire growing method, left by the
Soviet Defence science, was the best.
2. Economic Review
Republic of Armenia
Territory – 29,743
Population – 2,970,495
GDP – 17,970,000,0001
1Compare 2012 CIA World Factbook
GDP per Capita – 5,400 C.U.
Labor – 1,194,000
Literacy – 99.6%
Before gaining its independence in 1991, Armenia's economy was largely based on chemical, machine
building, light, nonferrous metallurgy industries. Agriculture accounted for about 20% of the economy.
The Republic of Armenia was one of the first member states of the USSR which declared its independence
in the year 1991. This was followed by a difficult period of privatization.
As a result of positive economic changes successful transition to the market economy was marked in
Armenia. Since 1994 the country experienced consistent growth. А comprehensive stabilization and
structural reform program was successfully implemented, and in 2013 RA took 38th place in the world, in
the degree of economic freedom2. According to official data the recorded economic growth in 2012 formed
7%3. The economic situation has stabilized after the Presidential and Parliamentary elections. As a result
fertile ground for investment projects was established in the country. Taking into consideration the
transport blockade by Azerbaijan and Turkey it is appropriate to focus on those industries of economy
which do not require major transportation movements for product exportation. Thus the Armenian
government decided to promote the development of information and communication technologies and
high-tech.
In Soviet Union times the information technology spheres and scientific research institutes were highly
advanced in the Republic of Armenia, which became the core for the future development of these areas,
particularly sectors of laser technology and growing crystals.
In terms of human capital development the country occupies 87th place4. According to official data, the
average monthly salary is 345 cu5, indicating the availability of country's skilled and relatively inexpensive
labor.
According to the World Bank Armenia occupies 55th place among 183 countries for ease of doing business.
The latter comes to prove the stability and favorable investment environment in the country.
3. About the company
The proposal comes from a company initiative group "Valef". The company "Valef" was founded in 1998,
but it was organized entirely based on the staff of "Laserayin Tekhnika" Scientific Production Association
(SPA). For over 30 years , this group of employees, later on the company itself was working with Armenian
manufacturers of sapphire crystals, in particular - "Sapphire" APE, " Lazerain Engineering" NPA, Kirovakan
Chemical Plant , Institute for Physical Research of NAS RA . The main activity of " Valef " is associated
with the supply and study of the source material for crystal growth, quality control of tungsten and
2Extracted in 2013 from: http://www.heritage.org/index/country/armenia 3G. Minasyan, Economic indicators of Armenia in 2012 are positive: http://voskanapat.info/?p=684 4UNDP Human Development Indicators http://hdrstats.undp.org/en/countries/profiles/ARM.html 5RA State statistical service http://www.armstat.am
molybdenum products for the thermal units for crystal growth apparatus, supply of equipment for the
treatment of crystals (cutting, grinding, polishing), as well as the design of diamond instrument in
cooperation with "Almaz". In its type, the company "Valef" was the only one in the field to supply and
quality research for the entire metal base growth in Armenia.
3.1. Company structure
For the production of sapphire crystal a new structure (of company “Pure″», "Пюр", «Փյուր») is supposed
to be created, this will include the staff of "Valef" LLC , " Lazerain technique" SPA, "Sapphire" APE,
Vanadzor chemical plant, specialists of Solid State physics, quantum electronics and crystal growth
departments of Yerevan State University , as well as SEUA .
The legal form of enterprise: Closed Joint Stock Company;
Main production and head office is located at 21 Shopron Str., Yerevan.
The main structural units of the newly formed company will be:
• Growth site (production sapphire)
• The research site, quality control site
• The area of processing and manufacturing of semi-finished and finished products
The organizational structure of the company
Below is the production structure of the company "Pure"
General Director Scientific advisor
Marketing and
Finance
Director
Dep. Director on
Manufacturing
Machine-Shop
Security
Service
Human
Resources
Department,
Lawyer
Dep. Director on
general matters
and provision
Provision
Department
Sales
Department
Customs group
Chief
Technologies
Growth
Division
Chemical
Laboratory
Processing
Division
Consolidate development, installation, adjustment
of equipment
By the end of the year 5 the Company will have 70-80 employees.
Main manufacturing implementation staff is located in Armenia. These specialists during the past 20-30
years have been involved in growth, research, processing of sapphires as well as other materials.
Short resumes of the administrative-managerial staff is presented in the Appendix 3.
3.2 Goals and Objectives
The main objective is to establish the manufacturing and production of sapphire products, to enter the
world market and gain 10 % niche of world sapphire production.
3.3 The main activities.
The company is planning the following two activities for the first five years:
- Production and distribution of synthetic sapphire for high-tech industries
- Production of various sapphire elements and sales
4.3 Allocation of Responsibilities
In the company “Pure″ there is a strong allocation of functions and responsibilities among the structural
and territorial subdivisions:
- Production Subdivisions, setup assembling and connecting utilities:
assembly of the setup and its connection
production and maintenance
regular improvement of the product quality and its nomenclature
analysis of current and study of new solutions
provision of subdivisions with crude, equipment, device etc.
- Marketing Department
Market research and Product sales
supply –of contracts, barter transactions
Advertising – cooperation with mass media, participation at fairs, seminars and events
- Accounting
accountancy and reporting on the financial state
- Human Resources
training and professional development of personnel
3.5 Professional Development of the personnel
Over the next months the company will conduct trainings on sapphire growth. The training will take place
in “Tekhsapphire″ LLC, which is also manufacturer of growth equipment, and in the work places of our
company. It is planned to train 3 employees, as well as 2 sapphire processors during 30 days. The training
will take place in the equipment manufacturer’s premises – Meyer Burger Technology Ltd (Switzerland),
as well as at the work places within the company. Thus, it is planned that the main training will be
completed within 3 months after the purchase of the equipment.
4. Production
4.1 Introduction
Synthetic sapphires were used in the production of photonics and jewelry since the development of the
first large-scale production in 1902 by August Vernell. Solid state industry took an interest in sapphire use
on the silicon for high frequencies and components of high-integrity electronics in mid 60s. The real
sapphire production peak was observed at the end of the 90s with the use of LED (LightEmittedDiodes)on
the nitrate based blue long wave emission and later with the improvement of SoS Peregrine technologies.
Commercial production based on this technology became available since the year 2006. In the context of
non-substrate use, it is interesting with its composite mechanical durability, resistance to chemical
elements and thermal impact, also with high transparency of the ultraviolet, optical and infrared regions
of the spectrum, which accounts for the success of the materials used in such areas as the production of
semi-conductors, use in aerospace etc.
In LED industry uses mainly 2″6, 3″,4″ and recently also the 6″ substrates, while in the SoS industry 6″
substrates are used s-plan, and in near future 8'' r-plan.
4.2. Prime Cost Calculation
Currently there are 3 types of utilities for Kyropoulos growth method, that are considered as possible for
acquisition. Crystals weighing 32kg, 65kg, and 82kg are grown on them. The calculations for each weight
are presented below that are made at the time when this business plan was written (Autumn2013):
1) Weight of one crystal – 32kg, size – length 220mm x Ø180mm, 1kg prime cost – 170 cu.
For the production of one crystal the following is required:
6″- inches
Electricity/water – 1890 cu
Raw material – 1950 cu
Wages – 850 cu
Depreciation of the thermal unit and the crucible – 300 cu
2) Weight of one crystal – 65kg, size – length 230mm x Ø300mm, 1kg prime cost – 120 cu.
Electricity/water – 2260 cu
Raw material – 3900 cu
Wages – 850 cu
Depreciation of the thermal unit and the crucible – 300 cu
3) Weight of one crystal – 82kg, size – length 300mm x Ø300mm, 1kg prime cost – 105 cu.
For the production of one crystal, the following is required:
Electricity/water – 2260 cu
Raw material – 4920 cu
Wages – 850 cu
Depreciation of the thermal unit and the crucible – 300 cu
Calculations are made for the end of the term of the fifth year.
4.3 Potential uses of the product
The potential industries using of our product are presented below:
2’’ plates, are used for LED production
4’’ plated, are used for production of highlight LED, automotive
head and usual lighting lamps
4.4 Definition of the possible production by the end of the 5th year and its characteristics
Boule size Ø 300 x 300 weight 85kg
In case the crystal quality meets the requirements of the substrates, cores of the following sizes may
be cut.
Two inches
1. Ø52х178 – 2 pcs.
2. Ø52х245 – 1 pcs.
3. Ø52х96 – 1 pcs.
4. Ø52х252 – 1 pcs.
5. Ø52х260 – 3 pcs.
6. Ø52х140 – 1 pcs.
7. Ø52х158 – 1 pcs.
8. Ø52х82 – 1 pcs.
Total length of the core 2109mm weight 17906,59 g
In good cutting alignment 632 pieces of 2 – inch substrates may be obtained with about
0.3mm loss in a cut. .
6’’ plates, are used for production high-brightness LED and SoS (Silicon on Sapphire)
Boule size Ø 300 x 300 weight 85kg
Three inches and two inches
1. Ø78х112 – 1 pcs.
2. Ø78х237 – 1 pcs.
3. Ø78х103 – 1 pcs.
4. Ø78х276 – 1 pcs.
5. Ø78х118 – 1 pcs.
6. Ø52х156 – 1 pcs.
7. Ø52х241 – 1 pcs.
8. Ø52х268 – 1 pcs.
Total length of 3″ core 846mm weight 16161 g. In good cutting alignment 253 pieces of 3″ substrates
may be obtained with about 0.3mm loss on a cut.
Total length of 2″ core 665mm weight 5646 g. In good cutting alignment 199 pieces of 3″ substrates
may be obtained with about 0.3mm loss on a cut
Boule size Ø 300 x 300 weight 85kg
Four inches and two inches
1. Ø104х170 - 1 pcs.
2. Ø104х158 - 1 pcs.
3. Ø104х180 - 1 pcs.
4. Ø104х150 - 1 pcs.
5. Ø52х280 - 1 pcs.
Total length of 4″ core 658mm weight 2234 g. In good cutting alignment 151 pieces of 4″ substrates
may be obtained with about 0.3mm loss on a cut.
Total length of 2″ core 280mm weight 2377 g. In good cutting alignment 84 pieces of 3″ substrates
may be obtained with about 0.3mm loss on a cut.
Boule size 300 x 300 weight 85kg
Six inches, four and two inches
1. Ø156х200 - 1 pcs.
2. Ø104х118 - 1 pcs.
3. Ø104х150 - 1 pcs.
4. Ø52х120 - 2 pcs.
Total length of 6″ core 200mm weight 15283 g. In good cutting alignment 33 pieces of 6″ substrates may
be obtained with about 0.3mm loss on a cut.
Total length of 2″ core 240mm weight 2037 g. In good cutting alignment 72 pieces of 3″ substrates may
be obtained with about 0.3mm loss on a cut.
Boule size 300 x 300 weight 85kg
Six inches and two inches
1. Ø156х230 - 1 pcs.
2. Ø52х156 - 1 pcs.
3. Ø52х160 - 1 pcs.
4. Ø52х170 - 1 pcs.
5. Ø52х260 - 2 pcs.
6. Ø52х190 - 190 pcs.
Total length of 6″ core 230mm weight 17575 g. In good cutting alignment 38 pieces of 6″ substrates may
be obtained with about 0.3mm loss on a cut.
Total length of 2″ core 1196mm weight 10154 g. In good cutting alignment 358 pieces of 2-inch
substrates may be obtained with about 0.3mm loss on a cut.
5. Manufacturing-technological process and manufacturing capabilities.
Manufacturing requires modern equipment. Worldwide tendency lays towards increase in the weight of
the boules, as it leads to prime cost cuts. It is proposed to purchase 5machines with 32 kg capacity, and the
rest - 65kg and 82 kg. In one year, the 32 kg thermal units (as the autonomous unit) will be replaced with
82kg without changing the kiln. (The price for all kilns is the same, only the thermal units are different –
crucibles and sizes).
Manufacturing dynamics is the following:
During the first year there will be purchased 15 machines, where five machines with 32 kg capacity, 10
machines with 65kg capacity. 3 months will be required for the arrangement of the production and in 3
months for launching-commissioning and trial crystallization. Thus starting from 7-th month 5 machines
will be operating with 32kg and 10 machines with 65 kg. Considering the 80% equipment load, the
resulting sapphire amounts in 6 months will amount 1152kg and 3456kg. Total 4608kg.
During the second year, these 15 machines will produce 9216kg and additional new 15 machines will be
purchased – 5 for 32kg and 10 for 65kg. After three months of preparations with the same assumptions (80%
and 80%) these equipment will produce 1684kg and 6480kg accordingly.
During the third year, the purchased 30 machines will produce 19584kg of sapphire. The 20 new machines
(15 machines for 65kg and 5 machines for 82kg) on the same conditions will produce 10080kg sapphire overall
at the end of the third year all the machines together will produce 29664kg.
On the fourth year, the 32kg machines will be replaced with 82kg. The latter together with the remaining
65kg machines will produce during the fourth year there will be produced 35136kg. The new 10 devices (82kg)
in similar conditions will produces 6912kg. The total production in the fourth year will amount to 42048kg of
sapphires.
The assumed area for organizing the production consists of two halls each having an area of 576 square
meters, and the required number of rooms each 30-40 sq. m. Production facilities are ABP grid, feeding
from three different directions of power supply output of 4.6 MW. The water supply system is equipped
with circulating water equipment a cooling (cooling tower and a pool - 500 m3).
6.1 Production Plan
This chapter describes the 5 year production plan, including the product prime cost structure. The table
below presents the stages of the production plan with the estimated quantity of production equipment
Table 1 .Stap by step Production launch
Production Stages Number of crystallization
annually
Gross Output
I
Year
Production on 10 devices
5 devices – each 32kg
5 devices – each 65kg
48
72
1152kg
3456kg
Subtotal 120 4608kg
II
Year
Production on 30devices
15 devices from precious year
5 devices – each 32kg
10 devices – each 65kg
240
72
135
9216 kg
1684 kg
6480kg
Subtotal 447 17380kg
III
Year
Production on 50devices
30 devices from precious year
5 devices – each 82kg
15devices – each 65kg
456
36
162
19584kg
2304kg
7776kg
Subtotal 654 29664kg
IV
Year
Production on 60devices
50 devices from precious year
10devices – each 82kg
684
108
35136 kg
6912 kg
Subtotal 792 42048kg
V
Year
Production on 60 devices
20devices – each 82kg
40devices – each 65kg
288
576
9216 kg
35136 kg
Subtotal 864 44352kg
Total 138052 kg
Although the prime cost of the 82 kg boule is lower than that of a 65kg one, the final price of the items
made from them depends on the size of the boule itself and its cuttings. Therefore based on the potential
market demand, it is more beneficial to have large amount of 65kg devices. For example from the graph
presented by “Yole development″ can be seen that the demand for 8 inch bases is much lower than that of
the 6 inch ones, up to the year 2015. And this means that during the production of 6 inch bases the waste
from a 65 kg boule is much less than from an 82 kg one. In the course we shall observe the market
development and accordingly increase the number of growth installments by means of replacing the 65kg
ones with 85kg. It is worth mentioning that the total number of the installments remains unchanged and
only the thermal unit is subject to replacement.
In the process we shall be following the market developments and increase the growth equipment
numbers accordingly on replacing the 65kg with 85kg. It should be mentioned that the number of devices
will remain the same only the thermal hubs will be replaced.
5.2 Definition of the required devices
The table below shows main equipment required for growth and cutting of sapphire and its products:
Table 2
Denomination Price in cu Quantity (pc.) Amount
1 Diffractometer X'PERT PRO MRD X-ray 185744 1 185744
2 Cutting machine type K-8612 16120 2 32240
3 Radial Drill Machine RF-720A 15000 3 45000
4 Planogrinding Machine Saddle Type PFG-
2045H 41600 2 83200
5 Round grinding Machine MULTI GRIND 40000 3 120000
6 Static goniometer SG-1D 32500 1 32500
7 Mufel Kiln SNOL 40/1100 (300х450х300,
ceramic, microprocessor) 1300 5 6500
2008 2009 2010 2011 2012 2013 2014 2015 2016
2017
Sapphire Substrate Revenue and volume for SOS
production
US
$ m
illio
n
2”
eq
uiv
alen
t
8 Confocal Laser Scanning Microscope LEXT
OLS4000 159419 1 159419
9 Multistranded detaching machine
TAKATORI MWS-610SD илиТитан-П 150000 3 450000
10 Double-sided machine- MDF650 Somos 208000 2 416000
11 K1150SB double-sided surface lapping and
polishing machine 30000 15 450000
12 Interferometer VEECO NT 9100 A 112489 1 112489
13 Crystal growth device ТС- 300 280000 60 16800000
Total 18 893 092
Specifications and detail information on the equipment can be presented upon request.
5.3 The manufacturing- technological process scheme
The sapphire wafer manufacturing process starts with the growth of monocrystals. A core with circular
cutting is drilled in the monocrystal. The manufactured item is carefully inspected for defects and stains.
Then the core is cut into thin wafers, which are polished and prepared for the growth of the epitaxial layer.
Scheme 1 represents the main technological stages of the sapphire bases production.
Overall production stage scheme looks this way:
Scheme 1
Quality control and
definition of optical
orientation
Core drilling from
ingots
Polishing of the
edges
Determination of the optical
orientation of the basic cut
Wafer Cutting
Core Annealing
Sapphire Growth
Core Rinsing
Making the basic cut
In the last stage the product is packaged in special wooden containers for transportation.
The production meets the ecological requirements of the environmental production and employee safety.
The production is ecologically clean, safe and waste-free. The growth technology is confidential and
safeguarded.
5.4 The source material for sapphire crystal growth
The primary raw materials for producing leucosapphire crystals is aluminum oxide (purity not less than
99.99 %), which can be used in the form of fine-grained corundum or aluminum oxide powder. The
powder may be granulated or have any form and be wide spread in dimensions. When molten the dry
mix of alumina gives high shrinkage, so for the efficient use of crucible’s volume smaller sapphire mono
crystals are grown by the Verneuil’s method, or ingots of aluminum oxide, obtained by the method of
powder compaction are used.
The main producers of resources for production of large crystals using Kyropoulos, SUC and other
methods are such companies as:
Czech Republic - "Spolchemie", UstyeaboveLabo
France - RSALeS.A. Rubis Grenoble
USA - SASOL North America, Arizona state
South Korea - Manson Precession Industrial (MPI) Limited
China
5.5 The potential capacities of the production and calculation of the required equipment
-1 boule of 32kg grows in such machines in 14-16 days. In the 1st, 2nd and 3rd years it is estimated 15 units,
afterwards there will be 65kg machines.
The total amount at the end of the fourth year will be:
1 boule - 82 kg - grows 17-18 days –there will be 20 such devices
1 boule 1 - 65 kg growing 14-15 days –there will be 40 such devices
Table 3 The approximate calculation of the required equipment
Stages Name of the device Time for 1
boule
production
For 60 devices with workload of
0.75-0.85 boule /month – 5616kg
Time spent Machine Qnt.
Crystal Growth Sapphire crystal growth
device TC- 300 (method
Kyropoulos)
82 kg -432 hr
65 kg –432 hr
End of fourth
year
8640 hr
17720 hr
20
40
Crystal Treatment
1. Determination
of the
crystallographic
orientation of the
ingots
X'PERTPROMRDX-ray
Diffractometer
Polariscope PKS -250M, TPO
Cutting Machine type K-
8612
0.8 hr 68.4hr 1
2
2
2. Quality control
of the ingot and its
cutting
Laser Pointer Green Laser
Pointer 300 mW
Series : POWER Focusing
0.3 hr 5.13hr 5
3. Drill core
samples from
ingots
Radial drilling machine RF-
720A
4 hr 114 hr 3
4. Cutting the end
wedges
Cutting Machine type K 2,5 hr 106,8 hr 2
5. Bar grinding Flat-polishing machine
Saddle Type PFG – 1545H
2 hr 85.5 hr 2
6. Determination
of crystallographic
orientation
Diffractometer
X'PERTPROMRDX-ray
0,5 hr 42.75 hr 1
7. Grinding outer
diameter
Round-polishing machine
JMC-600AGC
2 hr 57 hr 3
8. The definition of
base shear
X'PERTPROMRDX-ray
diffractometer
1 hr 85.5 hr 1
9. Creating a basic
cut
Flat-polishing machine PFG
Statistical goniometer SG-1D
1,7 hr 72.6 hr 2
3
10. Wash up of
cores
Ultrasonic PSB- 56035 -05 0,3 hr 2.56 hr 10
11. Core Annealing Muffle furnace SNOL
40/1100 ( 300h450h300 ,
ceramics, microprocessor)
64hr(3 cores) 364.8 hr 5
12. Core Quality
control
X'PERTPROMRDX-ray
diffractometer
Polariscope PKS-250M, TPO
Confocal laser scanning
microscope LEXTOLS4000
1 hr 85.5 hr 1
2
1
13. Cutting
substrates
Wire cutting machine
TAKATORI MWS-610SD or
Titan -P
9 hr 256 hr 3
14. Grinding and
polishing of one
side
Double-sided grinding and
polishing machine K1150SB
Double-sided grinding and
polishing machine MDF650
Confocal laser scanning
microscope LEXTOLS4000
Ultrasonic tub PSB- 8035 -05
7 hr 39,9 hr 15
2
1
10
5
Muffle kiln SNOL 40/1100 (
300h450h300 , ceramics,
microprocessor)
Stereoscopic microscope
MSP-2, option 5
Spectrophotometer
VarianCary5000UV-Vis-NIR
Interferometer PTI250RS-
Zygo (ZYGO)
InterferometrVEECONT9100
A
3
1
1
1
15. Packaging
plastic sectional
5.6 Staff
By the end of the 5th year 33 employees from the hired staff will be involved at the site on crystal
growth and 23 in the area of processing.
Table 4. Working time allocation according to the stages of the project
Criteria
Project Stages
I II
Number of working days 299 299
Number of shifts 3 3
Shift duration, hours 8 8
Number of working hours per
week/person 40 40
The administrative staff is planned to work 5 days a week. The attendant operators work in shifts or
according to the schedule established for them. The production staff works in shifts defined below:
Single shift is 7 hours from 8:00-12:00 and 13:00-16:00 , break: 12:00-13:00 .
Two shifts working hours are as follows:
First shift: 7 working hours - from 8:00-12:00 and 13:00-16:00, break: 12:00-13:00;
Second Shift: 7 working hours - from 16:00-20:00 and from 21:00-12:00, break: 20:00-21:00.
Three shifts
First shift: 7 working hours - from 8:00-12:00 and 13:00-17:00, break: 12:00-13:00;
Second Shift: 7 working hours - from 16:00-20:00 and from 21:00-12:00, break: 20:00-21:00.
Third Shift: 7 hours - with 12:00-4:00 and 5:00-8:00, break: 4:00-5:00.
This work schedule ensures uninterrupted operation of 75 % installed systems, which is necessary for the
overall production and manufacturing process. The remaining installments may be in technological
maintenance mode. The shift passed by the logbook.
It should be mentioned that during the technological process, the personnel involved in growth of
sapphires will have a triple-shift schedule of work due to technological continuity requirement of the
growth process. Processing personnel will have a double-shift schedule of work.
The employee annual expansion plan is presented in the table below:
Table 5. The expansion plan for the number of employees
Name of the department 1st year 2nd year 3rd year 4th year 5th year
Growth sector 20 25 30 33 33
Processing 10 13 15 15 15
Mechine-shop 6 6 6 6 6
Total 36 44 51 54 54
6. Marketing plan
6.1 Industry and competition evaluation
The company has no significant competitors on the local level. Let us review them separately.
"Astra Kristals" CJSC was founded in 2011 with governmental support. In this area the growth machinery
is in development stage while in our case the devices are used together with established technology and
author’s control. "Sapphire" is another company, which also failed to ensure both production and sales of
products and it was declared bankrupt in 2009. Thus, locally, the company has no serious competitors and
there is no competition foreseen in the nearest future.
The situation is completely different on the international market, where there are about 130
international companies engaged in the production and processing of sapphire substrates, the majority of
which, approximately 65 %, operate in China, with both local and international investments. From a
geographical point of view, the countries engaged in sapphire production include the U.S.A., Russia, China,
France, Japan, and others, providing a wide range of production and the technologies used.
In the chosen market niche of 7-10%, the major strong competitors for the company are "Rubikon",
"Monocrystal / Atlas" and "Procrystal", that have both the growth processes, and the cutting and polishing
processes of the crystals, unlike other competitors, who have chosen one or two processing steps.
6.2 The growth prospects in sapphire crystals manufacturing
The sapphire global market growth in the past few years amounts to 20 % annually, mainly due to
the increase in demand for light-emitting diodes. One of the key components in LED manufacturing is the
sapphire substrate. For example, the global LED market the capacity in 2006 was 4.2 billion cu, and by
2011 it was expected to increase more than twice - up to 9.4 billion cu.
Global sapphire substrate market will have this structure7:
Since 2011, the semiconductive light sources began to compete in price with regular lights.
According to the forecasts provided by Yole Development, in 2015 the production of 6" and 4" substrate
layers will significantly increase, reaching 55% and 44% percent of the total manufacturing volumes in the
7TrendForce: Sapphire substrate market to escalate, source: DRAMeXchange, Nov 2013
78%
4%
4%
3%10% 1%
Sales 2013
LED
Lences for camera
Buttons
SoS
Films for windows
Watches64%
8%
13%
4%
10% 1%
Sales 2014
LED
Lences for camera
Buttons
SoS
Films for windows
Watches
market respectively, indicating a significant potential of market growth for LEDs. Despite the presence of
about 130 companies on the international market, we are confident that the growth of sectors, consuming
sapphire products will exceeds in times the rate of global production of sapphire products. In particular,
according to forecasts of the same company, based on market research performed, by 2017 the volume of
the market is expected to reach 1.4 billion cu, compared with the current 600 millions.
With the development of new technologies, in particular in the field of telecommunication
equipment, including television and tablet-phone trends, we may confidently state that the growth of
consumption of the on-line content leads to the larger manufacturing volumes of the corresponding
equipment of larger and as thinner as possible monitors. The latter has a direct impact on significant
increase of high-tech consumption, specifically, the use of larger diameter sapphires. This will ensure the
market diversification, thus, lowering the risks accordingly.
According to the forecasts of Yole Development, the conjuncture of the market of sapphire
substrate production, according to its sizes, will have the following outline:
Diagram 1
All values in %
67 6659
45
25
72 1
26
18
13
10
6
4
716
27
41
53
52
4844
1 5
16
37
5055
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010 2011 2012 2013 2014 2015
6"
4"
3"
2"
The diagram shows that the 6'' and 4'' substrates are challenging. Thus, taking the account of the
gradual growth of trends in this sector, as well as the technological and manufacturing features of
production, we can say that the course chosen by the company course is reliable and consistent to the
growing trends of the market.
It is also worth mentioning that one of the largest and most intensively growing markets for
sapphire substrate sales is the market LED lighting. Diagram 2 (according to the forecasts of Philips Color
Kinetics) shows the increase of expected turnovers (twice in comparison with 2008) in the field of LED
lighting systems. I.e., significant growth is planned, which is based on increasing global trends in energy-
saving equipment consumption.
Diagram 2
100
Value in billions $
50
The largest consumption urge is forecasted in large cities and developed countries that are willing
and actually are investing in this industry. Among those are such high-tech countries as Japan, the U.S.A.
and South Korea.
General lighting: regular lighting sour
Высверливание кернов из слитков
2008 2020
It should also be mentioned that along the industry growth and the consumption of the products,
due to the increasing number of competitors in the market, there is a price reduction trend of, which is
considerably connected with the growth of production.
6.3 Market entry plan
Thus, taking into account the market trends and prospects of the company, it was decided to diversify the
products to be offered ranging from raw material to final products of different sizes and diameters. The
latter will in its turn provide the versatility and flexibility towards the changes in market state. Besides, a
possibility of 8″ sapphire substrates production will be considered in the future, as a response to the global
trends. In future, we may also consider the possibility of producing illuminators and other durable and
stable equipment of such kind.
During the first two years, at the period of establishment and expansion of production and
technological processes, it is expected to market a small quantity of products through the available
channels. The latter will ensure the gradual entry and acceptance in the market. And the participation in
international exhibitions, seminars and other events will enable the expansion of the customer base and
successfully enter the international market.
7.4 SWOT Analysis
The SWOT analysis of company's strengths and weakness is presented below:
Table 6
Strengths Weaknesses
1. Over 30 years of successful work in production
and research of crystals and the presence in the
market itself.
1. Top average age of the core team and the
necessity of training for the younger specialists.
2. Strong connections with the main suppliers in
south-eastern Asia in the field of growth
equipment components and heating units.
3. Availability of a ready-to-go infrastructure
(space, electricity, water for cooling, all the
required services), providing a good start and
long-term successful prospects.
4. Strong connections with all the developers of
modern growth equipment.
5. Low average salary in comparison with other
countries and, in other equal conditions, a low
prime cost.
6. The presence of scientific research
organizations, such as SPU «Lazerayin Tekhnika»,
IFI NAS RA and others, which allows developing
and improving the production.
7. Development of new methods of growth is not
foreseen in the nearest 5-10 years, however,
there is a need to increase crystal weight to be
grown, which is possible thanks to the
equipment we chose to utilize.
8. Manufacturing optimization: the correct
choice of correlation of the number of devices to
the number of employees
9. Power intensity and accessibility of electricity
Possibilities Threats
1. Relatively stable situation in Armenia after all
the elections
1. Possible arrhythmic funding
2. The attention of the Government towards the
development of industry and high-tech.
2. Possible issues in the initial stage of market
entry
3. The possible changes in regulations (taxes etc.) 3. Creation of sapphires with a larger diameter,
but with lower expenses.
4.Projects with the cost of over 10 billion cu can
have tax benefits
4. Delays in raw material supplies
5. It is forecasted for example, to sustain the
consumption of the share of sapphire substrate
layers of 101,6 mm diameter and the growth of
substrate layers of 152,4 diameter up to 2020 in
the total volume, and the growth of the volume
itself for about approximately 20% per year up to
2015
6. There is a small number of producers in the
world, since a new production requires an
expanded high-tech infrastructure.
7. Projected growth of interest for sapphire.
Introduction of new areas of application with the
emergence of large sapphires.
Based on the many years of working experience of the personnel in this field and the connections,
both in international markets, and in different areas of economy, we can confirm that the company with
its current structure will be prepared to overcome the possible risks and to grasp the possible opportunities.
The latter is connected with the team's orientation towards growth and technological development, which
in its turn will provide the timely adaptation to the new trends and innovations in this field.
6.5 Advertising Plan
6.5.1 Advertising
Given the fact that the company will be promoted at the international level, almost from scratch, with
the aim of promoting products in international markets, the company is planning three main areas:
- Promotion via web pages and Internet resources
- Printing of promotional materials describing the peculiarities and types of manufactured products
- Participation in international exhibitions/tradeshows and other events to present and promote the
products on international markets and get acquainted with new technologies and technological solutions.
Taking into consideration the specific nature of the production and orientation towards international
markets, active media advertisement is not intended. Short commercial about the Company could be shot
and placed on internet.
The company plans to allocate 10% of the annual turnover to advertising expenses.
6.5.2 Branding
The company will be branded under the name "Pure". Thus an easy memorable English name is selected
in order to facilitate the process of integration and memorability of the brand itself. The main colors are
ruby and blue. The logo of the brand will be custom-built.
7. Sales
7.1 Forecasted production volume
Forecasted production volume for the 5 year period is presented below:
Volume of the output is distributed as follows:
Table 7.
Planned volume of the production, kg.
Planned sales of the products
Possible options
2″ polished wafer, estimated sales price of one substrate cu. - 6 cu
Table 7a
Year Quantity Total cu
1 year 1152 1 152 000
2 year 4345 4 345 000
3 year 7416 7 416 000
4 year 10512 10 512 000
5 year 11088 11 512 000
Total 34513 34 937000
Index 1 year 2 year 3 year 4 year 5 year Total
Boule 4680 17380 29664 42048 44352 138052
Or 2'' core 2304 8690 14832 21024 22176 69026
Or 2'' substrates 1152 4345 7416 10512 11088 134513
Machine loading level 75 %
Time of one crystal growth – 1 crystal in 15-18 days
2″ core estimated sales price of one kg -450cu
Year Quantity Total cu
1 year 2 304 1 036 800
2 year 8 690 3 910 500
3 year 14 832 6 674 400
4 year 21 024 9 460 800
5 year 22 176 9 979 200
Total 69026 31 061700
Boule estimated sales price of one kg -400cu
Year Quantity Total cu
1 year 4 608 1 843, 200
2 year 17 380 6 952, 000
3 year 29 664 11 865, 600
4 year 42 048 16 819, 200
5 year 44 352 17 740, 800
Total 138 052 55 220, 800
As can be seen from Table 7a, under the existing prices it is presently more profitable to sell 2'' cores, than
to manufacture substrates. The company will strictly monitor the market trends and follow them.
In any case, the intended technical equipment status of the company makes sure that it will be ready to
adapt to any situation on the world market and will quickly respond to changing market situation.
7.2 Prices for similar products in international markets
Price - weight of substrates in the form of cores and substrates
Average prices of the product in international markets during the year 2010 depending on the size of the
product, are presented in the table below. The data is based on the analysis and comparison of the
information contained in various generally recognized reports, as well as the actual market situation
(requests of customer-mediator). Prices (averaged) are based on 2009-2010 data.
Table 8. Price-volume
Product
Diameter
Polished substrate EPI Core (rod, core, ingot)
Price,
CU
Average
Thickness
, mm
Volume, g Price 1 kg*,
CU
Price 1
mm, CU.
Weight
1 mm g,
Price 1
mm, CU
Price
1kgsapph
ire in the
product
CU
2'' 15 0.38 3.06 4,900 39.5 8.7 13 1,500
3'' 44 0.555 10 4,400 79.2 20 34 1,700
4'' 78 0.775 25 3,120 100.6 31.2 45 1,440
6'' 350 1.2 87 4,022 291.6 74 145 1,960
Standard Production “CORE – SUBSTRATES″
On 1pc 2-inch substrate goes 0.88 mm core (ie, 2 -inch AS Cut substrate has a thickness of about 0.58
mm - 0.3 mm at the cutting loss).
1pc 3 -inch - 1.075 mm (1 mm)
1pc 4 -inch - 1.345 mm
1pc 6 -inch - 1.8 mm
7.3 Pricing policy
Despite the fact that current sapphire substrate market has not yet stabilized, there is a good basis that
in the nearest future the market of synthetic sapphire will start growing every year and the demand will
increase in comparison to supply.
According to analytical company Strategies Unlimited, the world market of synthetic sapphire is
growing steadily with the rate of over 25 % per year (CAGR) and aims to $ 1 billion.
Based on forecasts and research of famous companies engaged in sapphire marker, our company intends
to present, produce and sell 2″ cores, which is considered more favorable for our company (see Table N
7b). In future, together with the raise in demand for synthetic sapphire the company will produce sapphire
products not only for LED industry, but also the whole range of sapphire products in demand.
Since the technical equipment of the company allows us to have the entire range of products made of
sapphire, and, consequently, the ability to quickly respond to market change, our company will be less
vulnerable to fluctuations in the world sapphire market.
7.4 Sales of goods
Product sales are to be performed in the international market (the consumption in the local market
is minimal, thus it shall not be taken into account).
Bellow you may find the list of companies, considered as potential consumers of the products:
Table 9
CompanyName Production
1 Seoul
Semiconductor
Various types of light emitting diodes (Edison, Star,
ChipLed, z-series, Radial Ltd). LED modules
2 Lexedis Lighting
Gmbh
Emitter, nanoXED LED types.
3 Ligitek Electronics Various types of light emitting diodes, components.
4 ProlightOpto Emitter (1-4 W), Star (1-5 W) LED types. Optical lenses.
LED modules (maximum 3 LEDs).
5 HPLighting Emitter, Star LED types, with collimator. Lences for LEDs.
Indicators.
6 Neo Neon Lighting technology since October 2009. Private
manufacturing of LEDs.
7 Para Light
Electronics
Various types of LEDs, optical components.
8. Company development plans
The Company will be developing in line with the following business plan for the period of 5 years,
planning to enter the world market and gradually gaining 10 % level of the global production of sapphires.
As there are new fields of sapphire applications constantly emerging in global market, the company will
closely monitor them and keep up with the times.
The current global trends are associated with the transition to active use of energy-saving products
and technologies. Among them are: the solar energy and lighting systems based on light-emitting diodes.
Therefore, the sapphire, manufactured by the company on the basis of the mentioned technologies, will
establish a confident foundation for our business in the next 10-15 years.
The company will develop all the technologies, both for sapphire growth and its treatment.
Depending on the global trends the company will expand its capabilities in terms of both the quantity and
quality, aimed at achieving a more sizable share in the global production of sapphire. The range of products
will also increase depending on the needs of the global market. In the meantime the professional level of
company employees will be continuously raised.
We hope that the investment in this project will create a solid foundation for the development of
LED technology in Armenia, will establish a framework for the creation of new industries in the country,
and will also allow the company to achieve stronger positions in the international markets.
9. Financial plan
The project of production and sales of «Pure» crystals begins "from scratch."
The project organization and its launching require the following expenses for the period of five
years:
Title Expenses in cu
1st year 2nd year 3rd year 4th year 5th year Total
Fixed expenses
Space rental* 1530 m 2,1 cu for m² 22,000 22,000 22,000 22,000 22,000 110,000
Salary 720,000 720,000 900,000 960,000 960,000 4260,000
Electricity 205,000 513,659 719,129 924,585 1,232,780 6378,408
Water 5,000 15,000 18,000 18,000 18,000 50,000
Raw material 436,500 1,314,000 2,062,500
2,662,50
0 3,555,000
10357,200
Equipment depreciation 14,000 200,000 200,000 390,000 400,000 1204,000
Communal services for the space
rented (communication, internet,
heating) 20,000 20,000 20,000 20,000 20,000
100,000
Diamond tool 15,000 30,000 35,000 45,000 50,000 195,000
Transportation costs 16,000 26,000 30,000 30,000 35,000 137,000
Customs expenses 30,000 80,000 150,000 250,000 300,000 193,000
Security services 100,000 100,000 100,000 100,000 100,000 500,000
Purchase of vehicles and
maintenance 153,000 3,000 3,000 5,000 5,000
169,000
Table 10
*provided that the space will be rented at LT “Pirkal”
The anticipated profit of sales by the end of the fifth year will be equal to 47 million cu, provided
that the sapphire cores will be priced at 450 cu per 1 kg, which is already an actually low price.
Table 11
1st year 2nd year 3rd year 4th year 5th year Total
Gross income of the boule 1843,200 6952,000 11865,600 16819,200 17740,800 55221,800
Gross income of the Core 1036,800 3910,500 6674,400 9460,800 9979,200 31061,700
Gross income of the plate 1152,000 4345,000 7416,000 10512, 11512,000 34937,000
Thus the forecasted revenue from sales of boules for the Company by the end of the 5th year will amount
to 55 mln u.c. and 31mln and 34mln accordingly from core and plate sales. It is more profitable to sell
boules nowadays but the conjuncture of the market can change in time.
10. Investment plan gross income
Thus, the required amount of investment the period of 5 years equals to approximately 41 million cu, of
which the capital investment for equipment purchases will amount to 19.4 million cu.
Below you can find the table of investment requirements on annual basis.
Subtotal 1777,000 3736,858 5169,550 6255,400 6694,800 23633,608
Variable expenses:
Expenses for corrective maintenance
of production areas 5,000 5,000 10,000 10,000 10,000
40,000
Advertising 20,000 25,000 40,000 40,000 40,000 165,000
Business trip expenses 25,000 25,000 25,000 25,000 25,000 125,000
Other expenses 200,000 25,000 25,000 25,000 25,000
1000,000
Subtotal 250,000 255,000 275,000 275,000 275,000 1330,000
TOTAL 2017,000 3991,858 5444,550 6530,400 6969,800 24963,608
Equipment
Total equipment 18893,092
Total 43856,700
Table 12
Costs 1st year 2nd year 3rd year 4th year 5th year Total
Growth
Equipment 6300,000 4900,000 5600,000 - -
16800,000
ProcessingEquipment 2,093,092.00 - - - -
2093,092
Fixed costs 1777,000 3736,858 5169,550 6255,400 6694,800 20384,350
Variable costs 250,000 255,000 275,000 275,000 275,000 1330,000
10420,092 8891,858 11044,550 6530,400 6969,800 43856,700
Total 43856,700
The chart below shows the investments in relation to incomes by years. It is obvious from the chart
that starting from the year 4 the income will exceed investments more than twice, in the meantime
investments will be fully returned. The increase of income over the investments is significant and this is
made for the worst case scenario when the set product prices are way below the market price in the worst
consumption environment. With the market situation improving the given numbers will be outrun too.
Chart 2
If the income is reinvested in the manufacturing process then investment return can start from 4th year
and be finished at the beginning of 6th year after the product sales are accomplished. In case of the
considered selling price of $400/kg the investments amount to $21,5mln. In case if the selling price
is$600/kg the investments accordingly amount to 16,9mln and can be returned at the end of the 5th year.
I.e. the project price is 44mln. c.u., and the necessary investments are $21,5mln.c.u. or approximately
10.48.9
11
6.5 7
1.8
7
11.9
16.817.7
0
5
10
15
20
year 1 year 2 year 3 year 4 year 5
Axi
s Ti
tle
Years
Investment/Income
Investment
Income
17mln in case of $600/kg sales. The chart below shows the investment/loan return dynamics. The left side
columns show the sales prices of the sapphire $400/kg and $600/kg. I.e. $600/kg will require $16,9mln
investments and they will be returned at the end of the fifth year. In any case the investment will be
directed only for the purchase of the equipment.
Chart 3
11. Competitive advantages and conclusions
Based on the above mentioned we can conclude that the intended plans of the company «Pure» to develop
sapphire substrate manufacturing is a viable project. Starting from the end of the first, and the beginning
of the second year of the business plan implementation the sales of products will begin, and in the worst
case scenario in the middle of the fifth year the company will proceed to self-funding.
The main advantage of Armenia in this business and the project in particular will be two parameters
research and scientific school, that was being established through 25 years with the whole power of the
Soviet Union Security Complex and of course the staff. Brief description of creation of the school is given
in the resume part in the beginning of the document.
Thus, with the investment of 16-21,5 million cu Armenia will become one of the leading manufacturers
in this market. This will also provide an opportunity of employment and further development of scientific
potential in the field of high-tech. All the above mentioned will raise the rating of the Republic of Armenia
as a country with developing high tech solutions and will attract, from our point of view, more and more
10.4
7.1
45.4
10.1
17.7
10.4
6
0.5
11.4
18.219.5
0
5
10
15
20
25
1 2 3 4 5 6
Mln
.
Years
Investments or Loan/Profit
Investment/loan Profit
international investors, which, in its turn, will contribute to the development of the country and its overall
economy.
Appendix 1
13.2 Risk assessment
Risk scale is identified as following :
- Insignificant Risk
- Small Risk
- Average Risk
- Large Risk
- Very large Risk
Macroeconomic Risks
Title Characteristics Estimated Risk Risk minimization
measures
Purchasing power
reduction
The world economic situation is considered
stable and is returning to the pre-crisis
situation, as a result there is expected an
increase in manufacturer's purchasing power
Small Risk
Not required
Inflation rate
Inflation rate in the country as of beginning
of 2013г. Amounted to 6,1%, while the
forecasted rate is less then8%
Insignificant Risk
Price correction
might be required
Industry Risks
New competitors in the
market
Development of competitors in innovative sphere
requires significant workload and funds
Insignificant Risk
Industry analysis and
follow up on new players
New types of equipment Technology advancement and quality characteristics and
so on
Insignificant Risk
During the business plan
development there was no
revolutionary solution
developed to produce
sapphires
Project implementation Risks
Difficulties to raise funding
for the project
implementation
Impossible to implement the project without external
financial injections
Large Risk
At the first stage it is
planned to get investor
funding while further on
increase manufacturing
facilities based on the
developed income
Lack of circulating means Problems with supplies of raw materials and as a result
failure of the production
Large risk
Signing contracts with
reliable suppliers and
development of raw
material reserves in stock
Manufacturing Risks
Difficulty finding
buyers
Mistrust of the consumers, lack of territorial
and massive supply of the sapphire
substrates
Large Risk
It is planned to make a web page and produce
adds. Widening the consumer circle through
pushing the products on international level
Difficulty collecting
payment for the
supplied product
Lack of funds for manufacturing new orders Insignificant Risk
After gaining confidence with suppliers possibility
of signing partial prepayments conditions with
consumers
Group of methods for Risk compensation suggests creating danger warning or mechanisms reducing the
possible negative outcomes of unwanted events to occur. The most effective method is the strategic
planning that will allows to identify the bottlenecks in the production, identify the specific risk factors
profiles, prevent loose positions in its own market sector, thus develop complex compensation measures.
Development of the financial strategy, actives and passives management policy, organization of their
optimum structure and the access to appropriate liquidity of invested means – this combination is the most
viable for the high efficiency of capital use.
Strategic plannig of the enterprise
Prognosing of the externzal situationzz
Monitoring of socio-economical legislative environment
Active targeted marketingv
Appendix 2
Patent 1
Patent 2
Appendix 3
4.1 Administrative- managerial staff Resumes
General Director
Edward Zhora Tumanyan
Acquired higher education in engineering and electronics. Has 36 years of managerial experience in
different fields. Has worked in the research and science institute of condense physics (from 1988
reestablished as Science Production Union «Laser equipment»); deputy director of company «Prometheus»
on sales organization at the first Burse in the country. For the past 11 years has been involved in
entrepreneurship – is the founder and director of the «HES Meghy» LLC. Company is specialized in honey
production and sales as well as beekeeping utensils.
Scientific Advisor
Armen Hayrapet Nazaryan
Ph.D.in physic and maths. Has 45 years of scientific managerial positions experience starting from Institute
of Physics SCNE (group head), later Yerevan State University (head of radiation physics problem lab,
afterwards sector head of solid-state lasers), SPU «Laser equipment» (head of gas laser and distance probing
department, deputy director, director). The author of about 70 scientific articles and publications, both in
local and international journals.
Deputy Director on Production
Ashot Zemlyak Arakelyan
PhD. in physic and maths with 20 years of managerial experience growing crystals in the SPU «Laser
equipment». More than 25 scientific articles and publications, both in local and international journals.
During the past 5 years was accounted as director of the Yerevan Branch of the Moscow Institute of
Business and Law School.
Chief Technologist
Samvel Raphael Gyulbudaghyan
34 years of experience growing crystals, as on the territory of RA so at international companies like KU
HA s.r.o. and Monocrystalexs.r.o..
Head of the lab for fluoride crystals in the growth department of crystals, as well as Lab head of oxide and
fluoride crystals at SPU LT-PIRKAL. Among his works there are 11 scientific papers on crystal growth.